Donald Trump’s move to force a sale of TikTok’s US operations puzzles analysts
- Beside questions of legality, the US president’s order that a sale must occur by mid-September is more likely to lead to chaos than resolution, they say
- Microsoft is in talks with ByteDance but ‘I just don't see that they are going to be able to pull this off,’ one lawyer says
A possible ban on TikTok, the popular video-sharing app owned by the Chinese tech conglomerate ByteDance, showcased the determination of US President Donald Trump’s administration to root out national security threats it says China poses.
But brokers and policy analysts say that Trump’s executive order fell short of clarifying how the app threatens American security and that to force a sale of TikTok’s US operations within 45 days is more likely to lead to chaos than to a resolution.
“A regular deal takes about five to six months,” said Chris Griner, who focuses on national security issues for merger deals at the law firm Stroock & Stroock & Lavan. “Now you've also got to throw in the government and make sure they're happy with the transaction.”
This is a giant fire sale. This is extraordinary
Microsoft is said to be bidding for TikTok’s US, Canada, Australia and New Zealand operations at about US$30 billion. And 45 days is a tall order to complete a deal this massive.
“You could throw a bunch of lawyers into the dungeon and have them work for 45 days,” Griner said. “But still, you've got to negotiate with all parties.
“I just don't see that they are going to be able to pull this off without some kind of an interim solution,” he said, adding that putting TikTok assets into a trust before the deal completes might be one way to allay US government concerns about the company’s ownership in time.
“This is a giant fire sale. This is extraordinary.”
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Trump gives Microsoft 45 days to buy TikTok from China’s Bytedance